The first of the postwar baby boom cohort, born 1946–1964, will turn 55 years in 2001. In just three decades, an extraordinary change in the age structure of the United States is anticipated. By 2030, one in five persons (20% of the U.S. population) will be aged 65 or older, increasing from the present ratio of one in nine persons (12.8%). The number of persons in the 65 and older age group will more than double, increasing from the current 34 million persons to 70 million persons. Moreover, within the older segment of the population, because of longer life expectancy and additional persons reaching older ages, there will be age shifts resulting in the 85 and older population more than doubling in size from 4.3 million persons to approximately 8.9 million persons.

An aging U.S. population means less productive workers, less big-spending consumers, and more dependent elders…

The chief economist for Standard and Poor’s is now confirming the importance of national demographics:

But I don’t think [a lost decade in the U.S. is] as likely over here. For one thing, one of the problems in Japan was the demographics. And we don’t have the problem of a declining population to deal with, although the labor force is going to slow down considerably as soon as the baby boomers retire.

In other words, America’s age demographics aren’t as bad as Japan’s, but they aren’t helping, either.